SMSF minimum balance
While ASIC doesn’t support a minimum balance requirement for SMSFs, there are alternatives which it could support. “There may well be a role for introduction of either a ‘soft’ minimum balance for SMSFs or guidance on an appropriate minimum balance,” said ASIC. According to the submission this could include a minimum balance being required unless “certain requirements are satisfied”, or an adviser having to justify the recommendation on an ‘if not, why not’ basis.
It is also worth considering if better information can be given to potential SMSF members about the cost-effectiveness of SMSFs, “for example, Statements of Advice in relation to SMSFs could be subject to a requirement to set out the operating costs of an SMSF compared to the cost of staying in the client’s existing APRA-regulated fund,” said ASIC.Read More »ASIC doesn’t support minimum account balances for SMSFs